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LB 264

Provide, change, and eliminate transfers from the Cash Reserve Fund and various other funds and change, terminate, and eliminate various statutory programs

109th Legislature (2025-2026) Introduced by John Arch

LB 264 reallocates existing cash funds into the General Fund and other funds, funds many programs, and repeals obsolete ones as part of the 2025‑27 budget.

Provisions/portions of LB348 amended into LB264 by AM1389
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Bill Summary · LB 264

Summary — LB 264 (2025)

Status: Passed Legislature (Final Reading 35–13–1); Approved by Governor May 21, 2025 (contains emergency clause).
Introduced by Speaker Arch at the request of the Governor (part of the biennial budget package).

Main purpose

LB 264 implements a large, across‑the‑board set of one‑time fund transfers, technical fund‑management changes, statutory terminations, and repeal of obsolete programs as part of the Governor’s and Appropriations Committee’s 2025–27 budget recommendations. It reallocates cash‑fund balances into the General Fund and other designated statewide funds, changes uses/administration of several funds, and terminates or repeals a number of programs and statutory provisions.

Key provisions and changes

  • Large number of specified transfers from many state cash funds to the General Fund or other funds. Examples (representative, not exhaustive):
    • $8,250,000 from the State Insurance Fund to the General Fund (before June 30, 2025).
    • $25,500,000 from the Military Installation Development and Support Fund to the Site and Building Development Fund (FY2026 window).
    • $32,700,000 (enrolled version) from the Water Recreation Enhancement Fund to the General Fund (FY2026 window).
    • $15,000,000 from the Economic Recovery Contingency Fund to the General Fund (FY2026 window) and $5,000,000 to the State Park Cash Revolving Fund.
    • Numerous smaller transfers (many from specialized cash funds such as Vehicle Title & Registration System Replacement, Financial Institution Assessment, Motor Carrier Systems, Customized Job Training Cash Fund, Lead Service Line Cash Fund, Nebraska Environmental Trust Fund, and many others).
    • Some transfers are scheduled before June 30, 2025; most occur “on or after July 1, 2025 but before June 30, 2026” (several provisions cover FY2026 and FY2027 windows).
  • Changes to fund management and investment‑earnings treatment for select funds.
  • Termination, elimination, or repeal of multiple statutory programs and funds, including (among others):
    • Nebraska Broadband Bridge Act provisions and certain broadband infrastructure funding mechanisms.
    • Nebraska Nonprofit Security Grant Program Act.
    • Customized Job Training Act and Small Business Assistance Act.
    • Biotechnology Development Cash Fund and the Economic Opportunity Program.
    • Other obsolete or superseded fund/account provisions (many statute sections repealed outright).
  • Policy and program amendments were added via multiple floor and committee amendments. AM835 (Appropriations Committee) served as the base amendment; AM1389 incorporated portions of LB 348. Other amendments adjusted amounts, timing, and removed or added sections (see legislative history).

Who is affected

  • State fiscal picture: General Fund balance and one‑time resources are increased by reallocating existing cash funds; recipients of targeted programs (housing, workforce, economic development, environmental, broadband, etc.) may see funding reduced, eliminated, or redirected.
  • State agencies that administer affected cash funds and grant programs (e.g., Dept. of Administrative Services, Department of Economic Development, DHHS, Dept. of Education, Department of Transportation).
  • Local governments, nonprofit grant recipients, school districts and cooperatives (through special education reimbursement and other program changes), and private entities that previously accessed eliminated or reduced programs.

Procedural / timeline notes

  • Many transfers specify a narrow timing window (some before June 30, 2025; most between July 1, 2025 and June 30, 2026; a number occur in FY2027).
  • The bill contains an emergency clause; enactment (and many operative changes) takes immediate effect upon the Governor’s signature (signed May 21, 2025).
  • The bill was amended extensively during committee and floor action (AM835, ER77, AM1389, and numerous other sponsor/floor amendments). Portions of LB 348 and LB 451 were incorporated by amendment.

For detailed line‑by‑line transfer amounts, amended statutory language, and the list of repealed sections, see the enrolled bill and the Appropriations Committee “State of Nebraska FY 2025‑26 and FY 2026‑27 Biennial Budget, As Proposed” report cited in the bill materials.

Compiled from official sources — confirm details with the bill’s official record.

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